Thrilled I finally get to say this: that was the end of the week (and month) we were hoping for –the best month in fact since November 2020. After Apple and Amazon last night with positive numbers, there was only one way for markets to go. While it’s still a bit too early to call the rotation as of late a full trend, a break through of the June highs for indices would put us on high alert (June high for the S&P was 4177.51 vs today’s close of 4130.37). Our charts team is also flagging that MedTech names in the US are picking up, while Financials names are deteriorating. The tidal wave of economic data continued this morning – we had the Fed’s preferred inflation gauge, PCE Deflator, which like the rest of inflation data, came in ever so slightly elevated. The latest University of Michigan Sentiment/Current conditions also hit this morning, and with Sentiment and Current Conditions higher than expected, the market had a green light to keep climbing. It did just that, with the index rising throughout the afternoon. Tech and discretionary names led, both after numbers last night and on slightly better consumer data. This wasn’t a hard and fast rule however, as Intel (INTC, -8.56%) slashed forecasts for the year, and was harshly punished.
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